Quick Jump
Definition of Shipper Load and Count
Shipper Load and Count (SL&C) is a shipping designation indicating that the shipper is solely responsible for loading cargo into a container or trailer and verifying the quantity of goods loaded. When this notation appears on a bill of lading, it signifies that the carrier has not independently verified the contents, count, weight, or condition of the freight. The carrier accepts the sealed container or trailer based entirely on the shipper's declaration, transferring liability for accuracy and any discrepancies to the shipper rather than the transportation provider.
Why is Shipper Load and Count Used in Logistics?
Shipper Load and Count serves several critical functions in modern logistics operations. First, it enables carriers to maintain operational efficiency by eliminating the time-consuming process of manually counting and inspecting every shipment. For high-volume shipping operations, this translates to faster turnaround times and reduced labor costs.
Second, SL&C protects carriers from liability claims related to cargo shortages or damage that may have occurred before the carrier took possession of the sealed container. This clear delineation of responsibility is essential for managing risk in complex supply chains involving multiple parties.
Third, the designation supports the integrity of sealed container shipping, which is fundamental to international trade and intermodal transportation. By accepting shipper-loaded containers without breaking seals, carriers can maintain chain of custody documentation and security protocols required by customs authorities worldwide.
Key Components of Shipper Load and Count
Bill of Lading Notation
The SL&C designation must be clearly documented on the bill of lading, the legal contract between the shipper and carrier. This notation typically appears in the description of goods section and may include phrases such as "Shipper's Load and Count," "Said to Contain," or "Contents as Declared by Shipper." This documentation serves as legal evidence that the carrier did not verify the shipment contents.
Seal Integrity
A critical component of SL&C shipments is the container or trailer seal. The shipper applies a numbered security seal after loading, and this seal number is recorded on shipping documents. The carrier's responsibility is limited to ensuring the seal remains intact during transit. Any broken or tampered seals must be immediately documented and reported.
Weight Declarations
Under SL&C terms, the shipper provides the declared weight of the cargo, which is essential for transportation planning, regulatory compliance, and billing purposes. The Verified Gross Mass (VGM) requirement under SOLAS (Safety of Life at Sea) regulations has added additional weight verification responsibilities for shippers in ocean freight.
Documentation Requirements
Comprehensive documentation accompanies SL&C shipments, including packing lists, commercial invoices, and any required customs declarations. These documents detail the contents as declared by the shipper and serve as the basis for insurance claims, customs clearance, and inventory reconciliation.
How Does Shipper Load and Count Impact Supply Chain Efficiency?
Shipper Load and Count significantly enhances supply chain efficiency by streamlining handoff procedures between parties. Carriers can accept shipments without delays for inspection, enabling faster dock-to-dock transit times and improved asset utilization. This efficiency is particularly valuable in just-in-time supply chains where timing is critical.
For shippers, SL&C provides greater control over the loading process, allowing them to optimize container utilization and ensure proper cargo securing according to their specific requirements. This control can reduce damage rates and improve overall shipment quality when shippers maintain rigorous loading standards.
From a cost perspective, SL&C reduces carrier overhead by eliminating counting and inspection labor at origin points. These savings can translate to more competitive freight rates, benefiting shippers who maintain accurate counting and loading practices.
The designation also facilitates faster customs clearance in many jurisdictions, as sealed containers with proper SL&C documentation may qualify for expedited processing through trusted trader programs like C-TPAT or AEO.
What Challenges are Associated with Shipper Load and Count?
Liability disputes represent the most significant challenge with SL&C shipments. When discrepancies arise at destination—whether shortages, overages, or damage—determining responsibility can become contentious. Receivers may claim carrier liability while carriers point to the SL&C notation as evidence of shipper responsibility.
Accuracy concerns can create downstream problems throughout the supply chain. If shippers make counting errors or provide inaccurate weight declarations, it can affect inventory management, billing accuracy, and even transportation safety in cases of significant weight discrepancies.
Insurance complications may arise when claims are filed for SL&C shipments. Insurance adjusters must carefully examine whether losses occurred during loading (shipper responsibility) or transit (potentially carrier responsibility), often leading to prolonged claims resolution.
Fraud potential exists when bad actors exploit the SL&C system to conceal cargo theft, smuggling, or insurance fraud. This risk has led to increased scrutiny of SL&C shipments by customs authorities and insurance providers in certain trade lanes.
Technology integration challenges can occur when attempting to reconcile SL&C shipments with warehouse management systems and inventory tracking platforms that expect verified counts at each handoff point.
Frequently Asked Questions About Shipper Load and Count
What happens if there's a shortage on an SL&C shipment?
When a shortage is discovered on an SL&C shipment, the receiver should document the discrepancy immediately, including photographs and written notation on delivery documents. The claim is typically filed against the shipper rather than the carrier, unless there's evidence of seal tampering or carrier negligence. The shipper's insurance would generally cover verified losses.
Is SL&C the same as "Said to Contain" (STC)?
Yes, "Said to Contain" is essentially synonymous with Shipper Load and Count. Both notations indicate that the carrier is relying on the shipper's declaration of contents without independent verification. Other equivalent terms include "Shipper's Weight, Load, and Count" (SWLC) and "Contents as Per Shipper's Declaration."
Can a carrier refuse an SL&C shipment?
Yes, carriers retain the right to refuse shipments or request inspection if they have reasonable suspicion of undeclared hazardous materials, illegal contents, or significant weight discrepancies. Carriers may also refuse shipments with damaged or improperly sealed containers.
How does SL&C affect 3PL fulfillment operations?
Third-party logistics providers receiving SL&C shipments must implement robust receiving procedures including seal verification, count reconciliation, and exception documentation. Many 3PLs establish contractual agreements with clients specifying procedures for handling discrepancies discovered during receiving.
What documentation should shippers maintain for SL&C shipments?
Shippers should maintain comprehensive records including loading photographs, weight tickets, packing lists, seal numbers, and any video footage of the loading process. This documentation provides essential evidence for resolving disputes and supporting insurance claims.
